Category: December of 2011

LOWEST MORTGAGE RATES EVER!! – OBAMA’S MASS REFINANCING PROGRAM

LOWEST MORTGAGE RATES EVER!!

January 9th, 2012

The MBS Market closed last week trading up (+ 25bps).  This was another great week for interest rates that saw fixed rates reach their LOWEST LEVELS EVER!!  In the history of the mortgage industry, borrowers have never been able to get better mortgage pricing than they can now.  It’s a pretty good time to be doing a mortgage. 

Rates might have dropped even lower if Congress did not pass HR3630.

I mentioned HR3630 in previous updates.  Congress is charging increased fees to homeowners to extend the employment taxes.  This comes in the form of Fannie Mae increasing guaranteed pricing to lenders which have to pass that on to borrowers.  This change goes into effect on loans delivered to Fannie Mae after February 10th.  Since most lenders lock on 30 day locks – this change will go into effect with almost every lender by the end of the week. 

This means that mortgage rate pricing should go up approximately .3 pts on every rate or .125% higher on the rate for the same costs.      

This can be offset if the MBS market continues to trade higher, but the market has trended up for almost 2 months – it will turn eventually. 

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .99 points, 4% paying 0 points

20 year fixed: 3.75% paying .1 points, 3.875% paying 0 points

15 year fixed: 3.125% paying .85 points, 3.25% paying 0 points

5/1 ARM: 2.5% paying .92 points, 2.875% paying 0 points

7/1 ARM: 2.875% paying .95 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4% paying 1 point, 4.375% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3.25% paying .0 points

30 year fixed VA: 3.75% paying 0 points


OBAMA’S MASS REFINANCING PROGRAM

There is a lot of chatter that a Mass Refinance Program could be released by President Obama before the elections.

The chatter centers around the possibility of President Obama replacing the current FHFA director with one of his own.  This would allow the President to implement his own guidelines for FANNIE MAE, FREDDIE MAC, FHA and VA.

The plan is said to allow borrowers to refinance their current loans to today’s low rates without:

AN APPRAISAL OR LTV REQUIREMENTS

CREDIT REQUIREMENTS OUTSIDE OF MORTGAGE HISTORY

INCOME REQUIREMENTS

ASSET REQUIREMENTS

The main requirement would be that the borrower has to be current on their existing mortgage for the past 3 months.  This is only for rate and term refinancing – no cash out.  This is also only for first mortgages – not combining a 1st and 2nd. 

So this basically takes out the main things blocking a lot of people from refinancing.  If this plan is implemented, we could see mass refinancing across the nation.  Now keep in mind this plan is meant for people that CAN NOT refinance with the current guidelines.  For example, if you have a lot of equity, good credit, and qualifying income – this plan is not going to offer you anything that is not currently on the market.

This plan is meant to help people that are upside down, low equity, bad credit, can’t prove their income, etc.

Watch for more updates on if this plan comes to fruition.  This should be very interesting to say the least. 

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Lowest Mortgage Rates Ever – Obama’s Mass Refinancing Program

2012 – MORTGAGE RATES END THE YEAR ON A HIGH NOTE

2012 – MORTGAGE RATES END THE YEAR ON A HIGH NOTE

January 4th, 2012

The MBS (mortgage backed security) market closed last week trading up (+ 87 bps).  We saw some great pricing improvement and rates continue to remain around their all time lows.    

As stated in the last rate update, I still don’t see rates going below certain levels due to there not being a secondary market for them after they fund. 

Pricing may get a bit better meaning the cost to get these options will be lower, but I don’t see rates going much lower than they are now. 

Below are rates available today paying a point or less:

30 year fixed: 3.875% paying .2 points, 4% paying 0 points

20 year fixed: 3.75% paying .2 points, 3.875% paying 0 points

15 year fixed: 3.125% paying .9 points, 3.375% paying 0 points

5/1 ARM: 2.375% paying 1 point, 2.875% paying 0 points

7/1 ARM: 2.875% paying .82 points, 3.125% paying 0 points

30 year fixed High Balance Loan: 4% paying 1 point, 4.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3.25% paying .0 points

30 year fixed VA: 3.75% paying 0 points

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IMPORTANT INFORMATION ON FILING 2011 TAXES WHEN QUALIFYING FOR A MORTGAGE:

Every lender in the country now requires a 4506-T form when completing a mortgage.  A 4506-T form allows a lender to check your transcripts with the IRS and make sure the tax documents provided match what the IRS received.  This helps reduce fraud and fake income docs to qualify for a loan.

If you are planning on doing a mortgage, it is best to wait to file your 2011 taxes until the loan is completed.  Once you file your return, a lender will have to wait until the IRS can confirm them before they will be able to complete a new loan.  The IRS usually takes 4-8 weeks to confirm new tax returns once they are filed.

So if you plan on doing a mortgage, don’t file your 2011 tax returns unless you want to wait a while before the loan can fund.

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

2012 – Mortgage Rates End the Year on a High Note

MORTGAGE RATES LIKELY TO RISE IN 2012

HAPPY NEW YEAR – MORTGAGE RATES LIKELY TO RISE IN 2012

December 27th, 2011

The bond market closed last week trading down (- 66 bps).  Interest rates/pricing rose last week by approximately .5% in costs.  This week will likely remain stable but we could see further rate increases next week. 

I expect rates to rise in 2012, and here are a few things that will likely affect interest rates and the US markets during the upcoming year. 

1.)    HR3630  is new bill likely to pass in Congress very soon.  The bill increases guaranteed fees on Fannie Mae and Freddie Mac loans (the vast majority of loans written in the USA) up 10 basis points.  FHA will also increase it’s annual mortgage insurance 10 basis points.  These price hikes will be passed on to the consumer, pushing the closing costs you pay for a new mortgage higher.  Since Fannie Mae, Freddie Mac, and FHA are all run by the government now, these price increases are likely being put in to place so the government does not have to increase the employment tax.  So instead of employees paying higher taxes for unemployment expenses and social security – mortgage borrowers will instead. 

2.)     The majority of economists (Based on an Associated Press Poll) feel that the US economy will start to grow faster in 2012.  The economy has created at least 100,000 new jobs in the past 5 months straight.  People applying for unemployment benefits are at their lowest levels since April of 2008. 

Economists predict jobs creation to increase even more in 2012.  Even though the projections for job growth are higher, experts predict the unemployment rate to stay near 8.4%.  The new jobs are only cancelling out population increase. 

3.)     Europe still remains a constant concern.  A default in the Europe debt situation could cause major ramifications to the US Economy. 

With the economy likely to improve in 2012 – we will likely see the stock market improve and investors moving their money from the bond market and into the stock market.  This should create higher pricing on mortgages. 

Unless a default happens in Europe (which will trigger investors to move funds back into the safety of the bond market), interest rates are very likely to rise in 2012. 

Below are rates available today paying a point or less:

30 year fixed: 4% paying .51 points, 4.25% paying 0 points

20 year fixed: 3.875% paying .68 points, 4.125% paying 0 points

15 year fixed: 3.25% paying .9 points, 3.5% paying 0 points

5/1 ARM: 2.625% paying ..74 points; 3% paying 0 points

7/1 ARM: 2.875% paying .91 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying .49 point, 4.375% paying 0 points

30 year fixed FHA: 3.75% paying .36 points, 3.875% paying 0 points

15 year fixed FHA: 3.25% paying .13 points; 3.375% paying 0 points

30 year fixed VA: 3.75% paying 0 points

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Mortgage Rates likely to rise in 2012

MORTGAGE RATES REMAIN AT RECORD LOWS

MORTGAGE RATES REMAIN AT RECORD LOWS:

December 19th, 2011

The bond market closed last week trading up (+ 66 bps). Another good week for the bond market but we have reached a level where rates aren’t really going any lower, regardless of the bond market. Some lenders have raised their pricing a little bit, even though the bond market is trading up.

The Mortgage rate market is still tied closely to the debt crisis in Europe. If investors continue to invest in the safety of US treasury bonds, mortgage rates should remain at their current levels.

Below are rates available today paying a point or less:

30 year fixed: 3.875% paying .55 points, 4% paying 0 points
20 year fixed: 3.75% paying .77 points, 4% paying 0 points
15 year fixed: 3.25% paying .658 points, 3.375% paying 0 points
5/1 ARM: 2.5% paying .87 points; 2.875% paying 0 points
7/1 ARM: 2.875% paying .475 points, 3% paying 0 points
30 year fixed High Balance Loan: 4% paying 1 point, 4.375% paying 0 points
30 year fixed FHA: 3.75% paying 0 points
15 year fixed FHA: 3.25% paying 0 points
30 year fixed VA: 3.75% paying 0 points

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

December 19th, 2011

Mortgage Rates Remain at Record Lows

MORTGAGE PRICING BACK TO LOWEST LEVELS EVER!!

MORTGAGE PRICING BACK TO LOWEST LEVELS EVER!!

December 14, 2011

It has been a great week for interest rates.  The bond market has rallied + 65 bps this week, pushing mortgage rates and pricing back to their lowest levels EVER!!

As I have discussed in previous updates, pricing can get better but rates should not go below the 3.75% to 3.875% range on a 30 year fixed loan.  Thus we are getting better pricing, but I don’t think rates will ever drop below 3.75% without significant costs.  The reason is because investors won’t buy them below this rate.  This is a good article from Mortgage News Daily on the current rate market: 

http://www.mortgagenewsdaily.com/consumer_rates/239687.aspx

I still recommend locking at this point.  Pricing usually only stays this low for a day or two before they move back up.

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying 1 point, 4% paying 0 points

20 year fixed: 3.75% paying .567 points, 3.875% paying 0 points

15 year fixed: 3.25% paying .262 points, 3.375% paying 0 points

5/1 ARM: 2.5% paying .947 points; 2.875% paying 0 points

7/1 ARM: 2.875% paying .619 points, 3.125% paying 0 points

30 year fixed High Balance Loan: 4% paying .889 points, 4.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3.25% paying 0 points

30 year fixed VA: 3.75% paying 0 points

 

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

December 2011

Mortgage Pricing Back to lowest levels ever!!

MORTGAGE PRICING IMPROVES ; HARP 2.0 UPDATE

MORTGAGE RATES IMPROVE:

December 5th, 2011

Fixed Mortgage rates improved slightly last week with the bond market closing + 53 bps.  ARM pricing has started to creep a bit higher lately.  ARM loans are less tied to the bond market than fixed loans are. 

There is not too much data coming into the markets this week.  The leaders in Europe are meeting on Friday to continue debt talks, but I don’t expect too much to come of that.

I still feel that the long term outlook is that mortgage rates will start to rise slowly in the coming weeks and months. 

Below are rates available today paying a point or less:

30 year fixed: 3.875% paying .653 point, 4.125% paying 0 points

20 year fixed: 3.75% paying .935 points, 4% paying 0 points

15 year fixed: 3.25% paying .725 points, 3.5% paying 0 points

5/1 ARM: 2.5% paying .97 points; 2.875% paying 0 points

7/1 ARM: 2.875% paying .883 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying .817 points, 4.5% paying 0 points

30 year fixed FHA: 3.75% paying .605 points, 3.99% paying 0 points

15 year fixed FHA: 3.25% paying .867 points, 3.5% paying 0 points

30 year fixed VA: 3.75% paying 0 points

HARP 2.0 UPDATE

When dealing with a new agency product, typically the big lenders announce when they are coming out and everybody falls in line.  The only lender I know of that has publicized HARP 2.0 updates is Wells Fargo.  They are releasing their HARP 2.0 rate sheets next week but are not offering the product for underwriting.

Many direct lenders have lines of credit from bigger banks to fund their loans.  Wells Fargo is an investor in my company as well as many, many other lenders.  Thus we will get it at the same time.

It is now starting to appear that the HARP 2.0 product may not make it to the market for some time.  As always, I will keep you updated on any new developments.    

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

MORTGAGE PRICING IMPROVES ; HARP 2.0 UPDATE

HARP 2.0 UPDATE : December 1st, 2011

HARP 2.0 UPDATE

December 1st, 2011

I am getting a ton of calls today regarding HARP 2.0.  Just wanted to give a quick update.  Even though HARP 2.0’s application date starts today, there are not any lenders that I know of (including my bank) that actually have the product available yet.  

I think in the coming week or two, lenders will start giving pricing and being able to accept this product.  Until then, I have to wait to actually quote and start the product.  I would hold off on having your credit pulled until the loan is available on the market.

I will keep you updated – have a great day!!

TODAY’S MORTGAGE RATES ; INTEREST RATES REMAIN STABLE

TODAY’S MORTGAGE RATES:

November 28th, 2011

During the past few weeks we have really seen a stable market for interest rates. Last week the bond market closed even (0 bps), keeping rates relatively the same as the week before. Rates have basically remained at the same levels for most of November.

I still recommend LOCKING in the present market. Rates look like they have hit their lows, and there is not any technical indicators that show that rates will go below their current levels. So without much hope of rates going lower, there really is only one way to go.

Floating a loan in the current market is hoping for rates to drop lower than they most likely will, and risking rates going up. I don’t think there is enough reward for the risk.

Below are rates available paying a point or less:

30 year fixed: 3.875% paying 1 point, 4.125% paying 0 points

20 year fixed: 3.875% paying .53 point, 4% paying 0 points

15 year fixed: 3.25% paying .85 points, 3.625% paying 0 points

5/1 ARM: 2.5% paying .78 points; 2.75% paying 0 points

7/1 ARM: 2.875% paying .92 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying 1 point, 4.5% paying 0 points

30 year fixed FHA: 3.75% paying .54 points, 3.99% paying 0 points

15 year fixed FHA: 3.375% paying .66 points, 3.625% paying 0 points

30 year fixed VA: 3.75% paying 0 points

 

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

November 28th, 2011

TODAY’S MORTGAGE RATES ; INTEREST RATES REMAIN STABLE

TODAY’S MORTGAGE RATES , HARP 2.0 GUIDELINES RELEASED

TODAY’S MORTGAGE RATES:

November 21st, 2011

The bond market closed another see-saw type week with trading ending at + 6 bps on the week.  Mortgage interest rate pricing has basically stayed the same and I expect more of the same results this week.  Although this is a work shortened week in America, Europe and Asia are business as usual.  There are not any major reports or events on the horizon this week that should raise or lower rates too much.

Have a happy and safe Thanksgiving with your family!!

Below are rates available paying a point or less: 

30 year fixed: 3.875% paying 1 point,  4.125% paying 0 points

20 year fixed: 3.875% paying .53 point, 4% paying 0 points

15 year fixed: 3.25% paying .85 points, 3.625% paying 0 points

5/1 ARM: 2.5% paying .78 points; 2.75% paying 0 points

7/1 ARM: 2.875% paying .92 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying 1 point, 4.5% paying 0 points

30 year fixed FHA: 3.75% paying .54 points, 3.99% paying 0 points

15 year fixed FHA: 3.375% paying .66 points, 3.625% paying 0 points

30 year fixed VA: 3.75% paying 0 points


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HARP 2.0 – WHO IS ELLIGIBLE?

HARP 2.0 is now only two weeks away.  The new guidelines were released this week and below are the MAIN changes. 

REMINDER:  A HARP loan is a product that allows homeowners backed by a Fannie Mae or Freddie Mac loan the ability to refinance their loan at up to 125% of the value with no mortgage insurance as long as they don’t have it currently.  The original loan must have been delivered to Fannie Mae or Freddie Mac by May of 2009.  Below are changes that will allow more homeowners to take advantage of this product.

HARP 2.0:

1.)  Starts with applications dated December 1st or later.

2.)  The biggest change – removing the 125% barrier for fixed loans.  There is an unlimited LTV for fixed loans and a max 105% LTV for ARM loans and loans with terms over 30 years.

3.)  Another biggie – eliminates the need for an appraisal or automated valuation model to complete the loan.

4.)  Allows 1 30 day late in the past 12 months – as long as it is not within the most recent 6 months.

5.)  Before, you had to have the same occupancy as when you took out the original loan.  This has now been lifted.  For example, you could not complete a HARP loan on an original primary residence that is now a rental.  Now you can.

6.)  Fannie Mae is removing the waiting periods for short sales and foreclosures for this product.

This program will help the underwater homeowners that have stayed in their home and maintained their payment, to lower their interest rate to the current market levels.  This is a great product, and I think this is a step in the right direction for our industry.

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HAVE A GREAT THANKSGIVING!!

 

 

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

TODAY’S MORTGAGE RATES, HARP 2.0 GUIDELINES RELEASE

 

HARP 2.0 – UPDATED GUIDELINES MEANT TO HELP MORE HOME OWNERS:

HARP 2.0

November 17th, 2011

HARP 2.0 is now only two weeks away.  The new guidelines were released this week and below are the MAIN changes. 

REMINDER:  A HARP loan is a product that allows homeowners backed by a Fannie Mae or Freddie Mac loan the ability to refinance their loan at up to 125% of the value with no mortgage insurance as long as they don’t have it currently.  The original loan must have been delivered to Fannie Mae or Freddie Mac by May of 2009. 

HARP 2.0:

1.)  Starts with applications dated December 1st or later.

2.)  The biggest change – removing the 125% barrier for fixed loans.  There is an unlimited LTV for fixed loans and a max 105% LTV for ARM loans and loans with terms over 30 years.

3.)  Another biggie – eliminates the need for an appraisal or automated valuation model to complete the loan.

4.)  Allows 1 30 day late in the past 12 months – as long as it is not within the most recent 6 months.

5.)  Before, you had to have the same occupancy as when you took out the original loan.  This has now been lifted.  For example, you could not complete a HARP loan on an original primary residence that is now a rental.  Now you can.

6.)  Fannie Mae is removing the waiting periods for short sales and foreclosures for this product.

What do you think of these changes?  The first version of HARP did not help nearly as many people as projected – Will these new changes be more effective in helping homeowners with little to no equity improve their rate and stay in their home?

HARP 2.0, Update Harp, New Harp Guidelines, Changes to Harp, Fannie Mae, Freddie Mac, Unlimited LTV, Loan to value, DU Refi Plus, Foreclosure relief, Mortgage insurance, equity, underwater, upside down, home values, December 2011, President Barack Obama, HARP 2.0

HARP 2.0 – UPDATED GUIDELINES